Telecom
CDMA Operators Battles for Survival amidst Low Revenue
The number of active telecommunications subscribers on the various networks operating in the country as released by Nigerian Communications Commission for the second quarter of this year indicated that Global System for Mobile communications (GSM) operators have continued to make impressive additions to subscribers on their networks compared to Code Division Multiple Access (CDMA) operators.
In the report CDMA operators recorded a decrease on the subscribers to their network from 9,115,165 in April to 8,658,318 as at June this year. But, GSM operators within the same period recorded an increase from 58,063,300 to 59,194,972. The implication of this is that in spite of different network expansion plans embarked upon by major operators in this space as well as promotions, Nigerians still prefer talking on GSM platform.
The issue that arises, is how can operators in this space survive in terms of competition with GSM operators bearing in mind the harsh economic downturn facing the country? This situation may have informed the recent promo embarked upon by some operators on the CDMA platform to shore up their subscriber base. Visafone and Starcomms have launched their promo campaign while Multi-Links Nigeria CommunicationsWeek gathered is planning a similar promo. In the Visafone ‘Enjoy the N0.00 advantage’ new subscribers to Visafone network will only need to purchase and activate a Haier FM phone for just N3, 333 or a Huawei C2802 model for N2, 222. The subscriber will in turn get back the full cost of buying the phones in the form of free airtime worth N3, 333 and N2, 222 respectively in three months.
More so, a subscriber is expected to use at least N200 over a 30 day period to get N1,045 worth of free airtime with 15 counts of free On-net SMS on the Haier FM phones while subscribers who purchase, activate and use up to N200 on the Huawei C2802 will get N741 worth of free airtime with 15 counts of free On-net SMS in each 30 day cycle. At the end of a 90 day period, the subscriber participating in this package would have gotten back the full price of his phone.
The free airtime is automatically credited to the phone as soon as the subscriber uses up to a minimum of N200 in a 30 days circle.
In a similar promo, Starcomms is offering two categories of mobile telephone, the ZTE X175 and the popular Haier D920, in a promotion that ultimately gives back the purchase money to the subscriber.
This new 100% money back promo by the company allows any subscriber who purchases the ZTE X175 and Haier D920 to enjoy on-net bonus airtime covering the value of the purchased phone within 30 days of their activation. The ZTE X175 phone is priced at N1,999 and upon minimum first time recharge of at least N100 (one hundred naira), the purchaser will get automatic bonus airtime and the Starcomms customer would be able to make free on-net calls to the tune of N1,999 within the first month of activation. The same token goes to the subscribers who buy the Haier D920 for the price of N2,299 and will be able to make free calls to any Starcomms line to the value of N2,299.
Starcomms in a statement acknowledged that the promotion is coming at a time when the purchasing power of many is generally dwindling and subscribers are keen to get adequate value for their money.
Speaking on the offer, Maher Qubain chief executive officer, Starcomms, said Starcomms acknowledges the adjustments people have had to make in the last few months of challenging economic situation. “It is therefore apt for us to respond positively, as we always do, to the yearnings of our subscriber, especially students and other people in the lower segment of the economy. We have therefore made it easy for people to join the Starcomms network without having to overstretch themselves financially. This is part of our strong resolve to always bring the best offer to the reach of our teeming subscriber,” he said.
The use of this free airtime can be enjoyed by Starcomms subscriber within only one month starting from the moment of first activation. The new subscribers will enjoy this offer alongside the value-added services like the missed call notification and the call waiting options.
The introduction of Unified Access License by Nigerian Communications Commission (NCC) in 2006 after the expiration of exclusivity right given to Global System for Mobile communication (GSM) operators was what Code Division Multiple Access (CDMA) operators needed to stamp their feat in the telecommunications industry. Before then, they were operating under limited mobile access license which restricted them from operating mobile service in unified manner. They as a result concentrated on offering fixed wireless and mobile service within the state they secured license to operate. More so, if any operator wishes to operate in another state outside its primary state of operation such operator would be required to apply for a license to operate in such location. This made it expensive to operate even as they were not required to offer roaming service like GSM operators. As a result of these, CDMA operators were mere local operators who concentrated their service in Lagos and Abuja commercially viable cities. They were struggling for subscribers with GSM operators that offered broader service, basically, because a GSM subscriber can take his or her phone outside Lagos and it works in as much as such network has coverage in the location, but mobile service rendered by CDMA could not offer this service, thereby giving them advantage over CDMA service. With the introduction of unified licensing regime, individual service provider is allowed to offer multiple services such as mobile telephony, fixed telephony, internet services and long distance services, there are over ten operators in this space. They included Starcomms, ZoomMobile, Intercellular, Multi¬-Links Telkom, Visafone, Rainbownet, Prestel, MTS First, among others. Under the current dispensation, CDMA operators that want to play in the big league are required to operate nationally, though there is choice of playing local but most see it as not economically viable to play local which has led to most of them going for national unified access license which is the prerequisite. Playing at this level entitles having foot print in almost every town in the country to be able to garner enough subscriber base which is the basis for profitability. To do this, they require strong financial base which most of these operators does not have. This situation changed the landscape of operation in CDMA space as they had to change their operational module to be part of the moving train in the industry and has ignited a contest for supremacy among them. This saw Starcomms selling some of its equity to Actis to raise money to expand its network, since then it has secured foreign loans in this regard making it to claim the biggest in the space. The company has already invested some US$800 million since it launched its network in 2002. It set for itself a target of reaching 2.5 million subscribers by the end of 2008, 5 million by the end of 2009 and a ten fold jump to 50 million by 2011. The company was listed on the Nigerian Stock Exchange (NSE) and raised around US$60 million. “We have always wanted two sectors of the economy, they are the oil and telecommunications sectors, represented in our market”, said Binus Yaroe, the NSE general manager of listing and quotations and a representative of the director general of the exchange. The stock market floatation raised funding for the company, while also allowing two investors, Actis and ECP to reduce their holdings.
Other operators did not seat to watch their Starcomms claim subscribers in a business they are also part of and equally have opportunities of playing big. Zoom Mobile, another contender had raised N25.9billion from investors through private placement. The company currently covers 62 cities and 350 villages and has a capacity for five million subscribers.
A foremost operator in that space Multi-Links deal with Telkom of South Africa, which saw the later acquiring 75% share of Multi-Links and later the remaining 25%, was what the company needed to re-launch itself into the market. Telkom has injected funds and managerial skills to make the business profitable; this is yet to be achieved as the company is yet to start making profit. Visafone, the youngest by name in the CDMA sector of telecommunications industry emerged from nowhere and is putting up an impressive performance having emerged as the fourth largest telecommunications operator in the country in two successive quarters. The company which is brainchild of Jim Ovia, a banker and industrialist has witnessed him bringing his managerial competence which he has used to make Zenith bank one of the strong banks in the post consolidation era to bear.
It has become worrisome to CDMA operators while some of them are being heavily affected by the economic meltdown, which calls for overhaul of business module and operational strategy. Against the backdrop of NCC’s planned introduction of Number Portability, CDMA operators’ faith of survival is hanging. Ken Aigbinode, executive vice chairman, Zoom Mobile, expressed fear on what will be the faith of CDMA operators when NCC introduces Number Portability. According to him, GSM and CDMA technology are two different technologies and that the GSM technology will play well with number portability than the CDMA because the CDMA technology is customized and fixed.
Possibilities of Survive
In spite of the wide differential in the subscriber base between CDMA and their GSM counterparts there are possibilities of surviving if they apply the right business model that is relevant to the operational environment. More so, the license they are operating with allows them to deliver service with their chosen technology without barriers. They need to adopt a cost effective way of rolling out service, such as sharing of infrastructure among others.
Gbenga Adebayo, chief executive officer, Community Network Support Services Limited, alluded to this when he cited situation in United States of America, where CDMA technology is the dominant while GSM operators are trailing behind. He said that what is happening in USA is possibly to play in Nigeria especially, when the right and quality of service is provided.
Telecom
MTN Foundation Commits N32Bn in Projects across Nigeria

The MTN Foundation has disclosed that it has committed more than N32 billion to social intervention programmes across Nigeria.

It said over 32 million people benefited from the scheme since its establishment in 2004.
The interventions, it noted, have reached thousands of communities nationwide through initiatives focused on education, healthcare, youth development and economic empowerment.
Speaking at the Anti-Substance Abuse Programme (ASAP) stakeholders’ conference in Ilorin, Joseph Akpata, Kwara State Manager, Development Portfolio, said the organisation has sustained its commitment to improving lives through impactful and measurable investments.
According to him, the foundation was created as the corporate social investment vehicle of MTN Nigeria and has continued to implement programmes designed to address critical social and developmental challenges.
“Since we started in 2004, we have invested over N32 billion in impactful projects across the country, and we have been keeping our records,” Akpata said.
He stated that the foundation’s interventions have so far impacted more than 32 million people in over 30,000 communities and scores of local government areas across the federation.
Akpata noted that the fight against substance abuse among young people remains a major priority for the organisation, prompting the launch of the Anti-Substance Abuse Programme in 2019.
He explained that the initiative was designed to reduce the number of first-time drug users through sustained advocacy, awareness campaigns and educational interventions targeted at young Nigerians.
“Our goal for the Anti-Substance Abuse Programme is to contribute to reducing the number of first-time users of drugs and other substances through advocacy, education and empowerment programmes,” he said.
The MTN Foundation official revealed that the programme has already reached more than 50,400 students across Nigeria, while over 1,500 teachers have received specialised training to support the campaign.
Mrs Mosun Belo-Olusoga, chairperson of the MTN Foundation, said the organisation remains committed to safeguarding the future of young Nigerians by equipping them with the knowledge and support needed to make informed choices.
Represented by Valentina Obayemi, she said the foundation’s belief in the potential of Nigeria’s youth inspired the launch of the anti-substance abuse initiative and continues to shape its interventions.
“This year, we are taking our message directly to 50 public secondary schools across 10 states and the Federal Capital Territory, reaching more than 20,000 students at a critical stage in their lives where the right information can shape their future,” she said.
Belo-Olusoga added that the foundation plans to train 250 additional teachers to identify, support and guide students participating in drug education and quiz competition programmes.
She said the intervention is also being extended beyond secondary schools through increased engagement with tertiary institutions and grassroots advocacy platforms.
According to her, the foundation is strengthening its partnership with the National Youth Service Corps to widen awareness campaigns while continuing support for the National Drug Law Enforcement Agency’s 24-hour toll-free psychosocial support helpline.
She noted that the collaboration is aimed at ensuring individuals battling substance abuse can access professional assistance and counselling whenever needed.
Telecom
NCC Begins Review Telecom Termination Rates after 8 Years

Nigerian Communications Commission (NCC) has commenced a comprehensive review of Mobile Termination Rates (MTR) eight years after the current rates were introduced, citing changing economic realities, technological advancements and shifts in telecommunications traffic patterns.

Mobile Termination Rates are regulated fees paid by one operator to another to complete calls across networks.
They influence competition, investment, and retail pricing.
The exercise, kicked off in Lagos at a mobile termination rate stakeholder forum on Tuesday, brought regulators, operators and industry participants into a structured process to reassess wholesale pricing rules that govern payments between networks for completing voice calls.
Speaking at a stakeholders’ engagement in Lagos, Mrs Omotayo Mohammed, head of Competition and Tariff at the NCC, said the review had become necessary because the existing rates no longer reflect prevailing operational and economic conditions in the telecommunications sector.
According to her, the current MTR stands at N3.90 per minute for generic operators and N4.70 per minute for new entrants, rates that have remained unchanged since 2018.
Mohammed noted that the telecommunications landscape has undergone significant changes over the years, driven by naira depreciation, rising inflation, escalating energy costs and evolving consumer behaviour.
“The foundation of wholesale interconnection affects every stakeholder in this room. Misaligned termination rates can enable dominant operators to foreclose smaller competitors, deter infrastructure investment and ultimately burden consumers through inflated retail prices,” she said.
She explained that the deployment of 5G networks, artificial intelligence (AI)-driven services and Internet of Things (IoT) applications has altered network usage patterns beyond what was envisaged in the 2018 cost model.
Mohammed further observed that over-the-top (OTT) platforms such as WhatsApp and Telegram now account for a significant share of voice and messaging traffic, reducing dependence on traditional interconnection services.
To drive the review process, the NCC has engaged KPMG as consultant for the study and stakeholder engagement exercise, which is expected to last four months.
The exercise will also examine issues relating to Unstructured Supplementary Service Data (USSD) services and application-to-person (A2P) short message service (SMS), both of which have become increasingly critical to Nigeria’s digital economy.
Mohammed stated that the review is being conducted in line with Sections 4, 96, 97 and 108 of the Nigerian Communications Act 2003, which empower the commission to promote investment, protect consumers and ensure fair competition.
She said the study would establish a cost-reflective MTR framework across different technology generations, operator categories and clearing house arrangements.
The review will also cover international termination rates (ITR) to tackle grey-route traffic concerns, develop a pricing framework for mobile virtual network operators (MVNOs) and assess the current asymmetric rate structure between established operators and new entrants.
“The consultancy adopts an evidence-based and consultative approach. Stakeholders will have opportunities to submit their views and validate assumptions before any determination is made,” Mohammed assured.
She added that the review is expected to enhance retail affordability, improve access to digital financial services and enable operators to recover costs in line with prevailing capital and operational expenditure realities.
According to her, transparent and cost-reflective rates will encourage infrastructure investment and boost investor confidence in Nigeria’s digital economy.
Mohammed also assured stakeholders that the NCC would make its methodology, key assumptions and cost model parameters available throughout the process to ensure transparency and accountability.
In her remarks, Mrs Nnenna Ukoha, director of Public Affairs at the NCC, noted that mobile termination rates remain central to pricing structures, competition, service quality and overall consumer experience.
“We are particularly encouraged by the rapt attention, intellectual rigour and keen interest demonstrated by participants throughout today’s session.
“This active engagement reflects not only the relevance of the issues discussed but also a shared commitment to the sustainable growth and development of Nigeria’s telecommunications sector,” Ukoha said.
She stressed that discussions at the forum highlighted both the challenges and opportunities associated with the MTR determination process and underscored the need for sustained stakeholder engagement.
Ukoha reiterated that the consultation window remains open and encouraged industry stakeholders to submit additional inputs, data and perspectives to support a balanced, forward-looking and sustainable outcome for the sector.
She reaffirmed the NCC’s commitment to collaboration and inclusive regulation aimed at building a resilient, competitive and future-ready telecommunications industry.
Telecom
Airtel Africa Foundation Completes Year One Scholarship Disbursement for 100 Tech Scholars in Nigeria

The Airtel Africa Foundation, through Airtel Nigeria, has completed the disbursement of first year funding to the first cohort of 100 beneficiaries under its flagship Airtel Africa Tech Fellowship Programme.

The initiative, which was launched to support high-performing but financially disadvantaged 100-level students studying technology-related courses in public universities, covers tuition, accommodation, stipends, and other essential materials such as laptop computers.
Each of the beneficiaries received an average of ₦500,000, making a total of ₦50 million disbursed as of May 29, 2026. Funding will continue, the Foundation has said, through the duration of the students’ four-to-five-year academic programmes.
The 100 recipients, referred to as Airtel fellows, were selected through an independent process from accredited public universities across Nigeria and are enrolled in courses including Computer Science, Information Technology, Data Science, Software Engineering, Cybersecurity, Artificial Intelligence, among others.
Participating institutions in the first batch of the scholarship scheme are the University of Lagos (UNILAG), the University of Nigeria, Nsukka (UNN), Ahmadu Bello University (ABU), the University of Benin (UNIBEN), Obafemi Awolowo University (OAU), the University of Ilorin (UNILORIN) and Tai Solarin University of Education (TASUED).
Commenting on the milestone, Chairman of Airtel Africa Foundation, Dr. Segun Ogunsanya, said, “We are not just funding education; we are building a pipeline of skilled innovators who will contribute meaningfully to Africa’s digital economy. The transparency of this process and the full delivery of our commitment to these 100 scholars are matters of great pride for the Foundation.”
Also speaking on the progress, the Chief Executive Officer of Airtel Nigeria, Dinesh Balsingh, noted that the initiative reflects Airtel’s long-standing commitment to empowering the youth through education and digital inclusion.
“At Airtel Nigeria, we believe that the future of our country lies in the hands of our youth. This ₦50 million disbursement is proof that when we say we are committed to empowering young Nigerians, we mean it fully and transparently. I congratulate every scholar and encourage you to make the most of this opportunity. Your success is our success,” he said.
The Airtel Fellowship Tech Fellowship forms part of the Foundation’s efforts to equip African youth with advanced digital and technical skills, within its broader F.E.E.D agenda which focuses on Financial Inclusion, Education, Environmental protection and Digital Inclusion.
Beyond financial support, the initiative is designed to equip beneficiaries with the skills, mentorship, and exposure required to thrive in an increasingly digital world.
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